Fannie Mae Sues Banks in Libor Case

U.S. Agency Estimates $800 Million in Damages over Alleged Interest-Rate Manipulation

Updated Oct. 31, 2013 4:32 p.m. ET

Fannie Mae sued nine of the world's largest banks over alleged manipulation of interest rates, joining the legal battles in the rate-rigging scandal.

The lawsuit, filed Thursday in U.S. District Court in Manhattan, said that the mortgage-finance giant sustained an estimated $800 million in damages from banks that allegedly manipulated the London interbank offered rate and other financial benchmarks. Fannie also sued the British...